- Community banks are boring and very unexciting.
- The community banking space has lack of investor attention, leaving some of these banks trading for low multiples.
- The lack of competition in the community banking space should be compelling for the investor in search of alpha.
When I first started dabbling in the investment world, I always avoided banks. The reason was simple, banks just seemed too hard to value and understand. Furthermore, all of the investors that I talked to wholly avoided banks for the same reason.
There was one exception. I found out a local bank that I had been banking at my whole life was a public company; Independent Bank Corporation (NASDAQ:IBCP). After doing very little due diligence, I proceeded to buy the stock, making a quick return in a very short time.
The entirety of the article can be found at Seeking Alpha.